Overview

Lago combines recurring and usage charges with prepaid credits, quotes, order forms, entitlements, quotas, and itemized invoices. That range makes it a better fit for businesses whose bills need to track changing consumption than for companies with only a simple, fixed subscription. It also supports online payments, payment reminders, multi-currency invoicing, and a client portal, covering much of the customer-facing billing cycle.

Teams can connect usage and commercial terms to invoices through a REST API, official JavaScript, Python, Ruby, and Go SDKs, and signed webhooks. The developer interfaces make Lago relevant when billing needs to be part of a product workflow, though adopting that flexibility means engineering, product, finance, and operations teams need to align on how usage and terms become charges.

Key features

Metering and integrations

Lago can meter AI input, output, and cached tokens separately, then attribute that activity to customers for billing. That separation is useful for AI services that need to account for different token categories rather than collapse all model usage into one measure. Listed AI integrations include OpenAI, Anthropic, AWS Bedrock, Google Gemini, Mistral, Ramp Router, Snowflake Cortex, Databricks AI Gateway, and Cloudflare AI Gateway.

Payment and finance integrations include Adyen, GoCardless, Stripe, NetSuite, Xero, Anrok, Avalara, HubSpot, and Salesforce. For teams already using those services, the breadth gives Lago a place in a larger billing and finance stack; it does not remove the work of deciding how the systems should fit together.

Controls and security

Lago describes single sign-on, role-based access controls, and audit logs, and states that it is SOC 2 Type II certified and undergoes regular third-party penetration tests. These controls make the platform a more plausible candidate for teams with access-management and security requirements. Premium includes platform support, business-hours incident management, and implementation guidance; 24x7 incident management and an assigned solution engineer are on-demand add-ons.

Pricing

Open source

The Open source plan costs 0.00 USD per free and is AGPLv3-licensed for self-hosted deployment. The separate Open-source self-hosted plan is also 0.00 USD per free, with AGPLv3 licensing and deployment on your own infrastructure. These options suit teams that can operate a self-hosted billing platform and prefer to start without a subscription charge; the trade-off is taking responsibility for the deployment rather than choosing Lago Premium's cloud option.

Lago Premium

Lago Premium has custom pricing, with cloud or self-hosted deployment. It is the option for teams seeking Premium support and implementation guidance or a managed deployment choice, but cost needs to be established with Lago. Some features are add-ons or subject to caps, including billing entities and data pipeline volume, so teams should account for those limits when assessing fit and total cost.

Platforms

Lago supports API access, web, and self-hosted use. Premium can be deployed in the cloud or self-hosted, and Lago says it can run on-premises or in a VPC. That range gives teams room to choose an operating model aligned with their infrastructure preferences, while the open-source plans are self-hosted.

Who it's for

Lago suits engineering, product, finance, and operations teams that need to turn customer usage and negotiated commercial terms into invoices. Fast-growing AI companies can use its distinct token metering, while global enterprises may value its multiple deployment options, multi-currency billing, and access controls. It is less compelling for a business that only needs basic invoicing or fixed recurring charges, where its usage and commercial machinery may be unnecessary.

Pros and cons

Flexible billing models: Subscription, usage, prepaid, and hybrid charges work alongside quotes, quotas, and itemized invoices, supporting more than a fixed-price subscription workflow.
AI-specific metering: Separate input, output, and cached token usage can be attributed to customers, giving AI products a direct way to account for token consumption.
Developer and deployment options: A REST API, four official SDKs, signed webhooks, and cloud or self-hosted Premium deployment support integration and infrastructure choice.
Premium cost and caps need consideration: Premium is custom-priced, while some features may be add-ons or capped by billing entities and data pipeline volume.
Self-hosting has an operational trade-off: The free open-source options require teams to host Lago on their own infrastructure.

Alternatives

For a narrower invoicing need, invoicing software is the broader category to compare. Teams focused on failed-payment follow-up can compare dunning management software; those evaluating recurring-charge workflows can browse subscription billing software. For metered product charges, compare usage-based billing software, and for charging for APIs, API monetization software.

Inkvoice offers a free cloud plan with one user, five customers, and unlimited invoices, making it a simpler option to consider for small customer lists. InvoiceShelf is a free, AGPL-3.0 open-source self-hosted option with unlimited invoices and customers and no seat or subscription charge, for teams prioritizing straightforward self-hosted invoicing. Hiveage offers a free plan with five clients and unlimited invoices, estimates, and time tracking. BillingEngine has a free plan capped at three invoices, three quotes, three receipts per month, and one user. Billbooks offers a 30-day trial with one user and five clients. InvoiceXpress has a €3.00 EUR per month X3 plan with three documents per month, unlimited users, API access, invoice scheduling, and multi-currency support. Zoho Invoice is free forever for Indian businesses, with up to two users, three projects, and 500 invoices per year. PayPal Invoicing offers invoice creation without setup or subscription fees, with transaction fees when customers pay.

Verdict

Choose Lago if your product needs billing that can combine commercial terms, subscriptions, and customer-level usage, or if AI token categories need to be metered distinctly. The open-source self-hosted plans and developer interfaces give capable teams a flexible starting point. Look elsewhere if you need only straightforward invoicing, or if you need a known Premium price before beginning an evaluation.

	Lago	PayPal Checkout
Free plan	Yes	No
Free trial	No	No
Paid from	Free	—
Open source	No	No
Platforms	api, self-hosted, Web	Web, api
Free plan	Yes	Yes
Recurring invoices	Yes	Yes
Online payments	Yes	Yes
Payment reminders	Yes	Yes
Multi-currency invoicing	Yes	Yes
Client portal	Yes	—

Lago vs PayPal Checkout

Lago

PayPal Checkout